590 Chapter 5
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MBA 590 Real Estate Analysis College of Business Alfaisal UNIVERSITY
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590 Chapter 5
Transcript of 590 Chapter 5
MBA 590 Real Estate Analysis
! College of BusinessAlfaisal
UNIVERSITY
Chapter 5 !
Market Determinates of
Value
Booms and Busts Supply and Demand
Risk
Cycles
Making a pizza is not the same
thing as building a building
Booms and Busts Supply and Demand
Risk
Cycles
Creation
GrowthDecline
Regentrification
Land is always there
Peak
Growth
Peak
Decline
Reinvent
Cities must reinvent or they die
Fur Trade Steel Cars
?
CitiesEasy Trade Access
CitiesRicher
Healthier More Choices
Economic Basewhat a city does
for the rest of the world
ActivitiesBase
Secondary
What are Riyadh’s
activities?
Location Quotient
local employment country employment
Shape of the City
why is the center so expensive?
reduce travel time opportunity costs
Middle Income Housing
Low income housing
Industrial
Burgess Model
Downtown
High Income Housing
Hoyt Modelhigh
income
Industrial Industrial
low income
low income
low income
Middle income
Middle income
CBD
Harris Ullman Model
multinuclei cities not one CBD lots of centers
Technology Change
trains to cars air conditioning
lighting information tech
Why are all the satellite stores at the same place?
Location
convenience: disperse
comparison: cluster
